Capacity Expansion 31 March 2008

Kanoria Chemicals & Industries commissions expanded Caustic Soda Capacity
New Delhi, 31 March 2008: Kanoria Chemicals & Industries Limited (KCI), India's leading manufacturer of chemical intermediates announced commissioning of its second 110 TPD capacity Caustic Soda plant using the environment-friendly membrane cell technology. The company's total manufacturing capacity of Caustic Soda now stands at 130,000 TPA.

The expansion of the membrane cell plant was the primary area of KCI's expansion plan with an initial planned outlay of Rs150 crore. This expansion will also result in the increase in capacities of co-products -Liquid Chlorine and Hydrochloric Acid.

Commenting upon the capacity expansion Mr.R.V.Kanoria, CMD, Kanoria Chemicals & Industries Limited said "We are pleased that our capacity expansion has been completed within the stipulated time period and estimated costs. The demand for caustic soda is growing with the increasing demand from paper, alumina processing, mining & mineral industries and is expected to rise further in view of large scale capacity increase in consumer industries especially alumina processing. The enhanced capacity of producing 130,000 TPA of caustic soda will strengthen our capabilities to cater to this increased demand."